PURCHASE, NY—The Experience Economy is real, according to the latest SpendingPulse Report from MasterCard Advisors. Spending is up—but likely not at stores.
Retail sales rose 4.6 percent year-over-year in July, the highest increase since October 2012. But the highest increases were in lodging, airlines and restaurants. Retail stores, grocery and automotive, on the other hand, continue to struggle.
"By and large, the U.S. economy has shown signs of positive growth over the last few months, especially as weather in most of the country improved," said Sarah Quinlin, senior vice president, Market Insights for MasterCard Advisors in the announcement. "Positive economic statistics such as new job hiring are giving consumers more confidence that the recovery is a reality. This confidence is seen in people taking vacations and dining out. They're choosing to truly 'experience' the rebound."
The only exception is jewelry, which has posted 17 consecutive months of positive growth, possibly the result of pent-up demand and an improving job market. Or perhaps, after we've all blamed bad weather for weak first-quarter sales, good weather will be responsible for weak back-to-school numbers, at least until this month?
What will bring shoppers back to the stores?
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